Definition of monopoly. Monopoly. Types of monopolies. Monopoly in a market economy

In reality, monopolies can arise due to various circumstances that are generated both by the direct will of the state to create certain monopoly structures, and by market policy or specific actions of a private person, an economic entity, leading to the emergence of a monopolist on the market.

It appears that to first group monopolies should be attributed state and natural monopolies, the granting of which a monopoly status in the market is associated with the direct law-establishing will of the state, expressed in a rule of law state, as a rule, in law. K.Yu.Totiev defines natural monopoly as "a sector of the economy that functions effectively only when the entire market is covered by one economic entity (for example, rail transportation)". The legal definition of a natural monopoly is contained in Art. 3 of the Federal Law of August 17, 1995 No. 147-FZ "On Natural Monopolies", according to which natural monopoly- this is the state of the commodity market, in which the satisfaction of demand in this market is more efficient in the absence of competition due to the technological features of production (due to a significant decrease in production costs per unit of goods as the volume of production increases), and goods produced by a natural monopoly cannot be replaced in consumption by other goods, in connection with which the demand in a given commodity market for goods produced by subjects of natural monopolies depends to a lesser extent on changes in the price of this product than the demand for other goods.

According to the legal definition of the concept subject of natural monopoly contained in Art. 3 of the Federal Law of August 17, 1995 No. 147-FZ “On Natural Monopolies”, it means an economic entity (legal entity) engaged in the production (sale) of goods under natural monopoly conditions.

As you can see, the state is interested in maintaining certain areas of economic activity within the framework of a monopoly, since economic activity in these areas is much more profitable if it is carried out centrally under a monopoly, rather than a competitive market. In this case, the monopoly acquires the status of a natural monopoly, i.e. the monopoly status of an economic entity in a given market segment is protected by the state from the development of competition, and therefore many competitive regulatory mechanisms do not apply to it. However, we note that all the above costs and disadvantages of the monopoly of the market do not disappear with the natural monopoly either. Therefore, in order to avoid such negative manifestations as an unreasonable rise in prices for goods, works, services of monopolies, and a number of other manifestations of monopoly activity dangerous for consumers and the economy, the state introduces special methods of regulation, in particular, the method of direct tariff regulation of the supply of goods, works services of subjects of natural monopolies, expressed in the determination and control of such prices (tariffs).

To legislation , determining the scope, procedure for activities, regulation and control of the activities of subjects of natural monopolies. include, first of all, the federal law of October 26, 2002 No. 127-FZ "On natural monopolies", as well as a number of special sectoral laws, fully or partially devoted to the regulation of certain areas of natural monopolies. These are the codes of the Russian Federation: merchant shipping dated April 30, 1999 No. 81-FZ, Air dated March 19, 1997 No. 60-FZ, Inland water transport dated March 07, 2001 No. 24-FZ, Water dated 03.06.2006 No. 74-FZ; federal laws of April 14, 1995 No. 41-FZ “On State Regulation of Tariffs for Electricity and Heat Energy”, July 7, 2003 No. 126-FZ "About Communication", dated January 10, 2003 No. 17-FZ "On Railway Transport in the Russian Federation", March 26, 2003 No. 35-FZ "On the electric power industry", July 17, 1999 No. 176-FZ "About Postal Service", March 31, 1999 No. 69-FZ "On gas supply in the Russian Federation", dated June 24, 1999 No. 122-FZ "On the peculiarities of insolvency (bankruptcy) of subjects of natural monopolies of the fuel and energy complex" and other laws and by-laws in the field of natural monopolies, including acts of constituent entities of the Russian Federation and local governments, adopted in accordance with and (or) in pursuance of the federal legislation on natural monopolies.

Second view monopolies, the creation of which is also associated with the direct legal will of the state, is government monopoly that differs from a natural monopoly in that it is created in those areas in which it would be beneficial from the point of view of economic development to have competitive markets, however, the need to ensure public interests, such as the strategic interests of economic, military security and others, requires the preservation or allocation certain areas of economic activity in the monopoly of the state. As S.A. Parashchuk notes, “the goals of creating state monopolies are: protecting the economic interests of the state and consumers, strengthening foreign trade, military and political positions of the state, etc. State monopolies are introduced in an imperative manner on the basis of legislative norms and are aimed mainly at ensuring public interests. Within the framework of state monopolies, in particular, the issue of cash, military-technical cooperation, certain segments of foreign trade activities and the circulation of precious metals are carried out.

It is necessary to reveal one more concept that characterizes a certain group of monopolies. The Demonopolization Program uses the concept of " temporary monopoly" and its legal definition is given. Let us recall that although this program is no longer in force, the concepts, principles and mechanisms of legal regulation of competition and monopoly formulated in it retain, in our opinion, an important doctrinal significance. According to this Program, a temporary monopoly is a monopoly in the conditions of a temporary absence of competition. The demonopolization program does not specify the types and content of the form of such monopolies. According to scientists, temporary monopolies include both actual monopolies and monopolies on the possession of information constituting a trade secret, and on the possession of any exclusive rights protected by law. concept subject of temporary monopoly is determined based on the content of the concept of temporary monopoly, taking into account its specific type.

Hence subjects of temporary monopolies may be business entities that have:

The actual monopoly position in the market due to the prevailing "in a particular industry due to a special market situation - an economic situation of a temporary nature", before the emergence of new economic entities - competitors in this market, after and as a result of which the monopoly of this one economic entity in this market disappears;

Information constituting a trade secret or any exclusive rights protected by law.

Hello, dear readers of the blog site. Monopoly is an economic situation in the market when the entire industry controls the only manufacturer (or seller).

The production and trade of goods or the provision of services is owned by a single firm, which is also called a monopoly or monopoly. The subject has no competitors, as a result, the company has a certain power and can dictate terms to customers.

Examples of monopolies

The word "monopoly" originated in ancient Greece and in translation means "sell one".

The definition of monopoly implies the existence of a business niche where dominated by one manufacturer, which regulates the quantity of goods and their prices.

In its pure form, monopoly companies are very rare. This is due to the fact that for almost any product or service you can find a substitute.

For example, the subway is a natural monopoly. If the infrastructure of the subway is divided between two or three competing firms, real chaos will begin. But when the subway services cease to suit the population, people will be able to get to their destination by buses, trams, cars, trains.

That is, the subway is a monopoly among underground, high-speed transport, but in the field of passenger transportation it is not.

The state of the economy in which dominated by one subject, typical for housing and communal services, the public sector, the production of products that require careful control.

Considering what a monopoly is, one cannot ignore another close concept - “oligopoly”. This condition is much more common in economics. Oligopolistic market shared by several companies. With the conspiracy of the main players, the market, in terms of its characteristics, approaches a monopoly (an example is cellular operators).

Classical - aircraft and shipbuilding, weapons production. Here it takes place between two, three suppliers.

Types and forms of monopolies

There are the following forms of monopolies:

1. Natural- arises when a business in the long run only serves the entire market. An example is rail transport. Usually, economic activity requires a lot of money at the initial stage.
2. Artificial- usually created when several companies merge. The collusion of enterprises allows you to quickly eliminate competitors. The educated structure resorts to such methods as prices, economic boycott, price maneuvering, industrial espionage, and securities speculation.
3. Closed— protected from competitors by law. Restrictions may relate to copyright, certification, taxation, transfer of unique rights to own and use resources, etc.
4. open- the only supplier that does not have legal barriers to competition. It is typical for firms offering new, innovative products that have no analogues at the moment.
5. double sided- a marketplace with one seller and one buyer. Both sides have power over the market. As a consequence, the outcome of the transaction depends on the negotiating ability of each participant.

There are other classification options, for example, they are divided into two types by form of ownership:

1. private
2. state

Or by territorial principle into 4 types:

1. local
2. regional
3. national
4. extraterritorial (global)

If we consider an artificial monopoly, when a number of enterprises (companies) merge, then they say about the various forms of such mergers:

Monopoly in the history of the development of society

People noticed the benefits of monopoly almost immediately with the advent of exchange and the emergence of market relations. In the absence of competition, product prices can be raised.

ancient greek philosopher Aristotle considered the creation of a monopoly and management of the economy. In one of the works, as an example, the sage talks about a subject who received money “in growth”. To make a profit, an enterprising person bought up all the iron in the workshops, and then resold it at a premium to merchants who arrived from other places.

The thinker also mentions attempts by the state to regulate monopoly. The cunning salesman was expelled from Sicily by the government.

In European countries in the Middle Ages, monopoly developed in two directions - as a result of the creation of workshops and through the issuance of royal privileges:

1. Shop is an association of artisans. He controlled the production of the participants' products. The main task of the organization was to create conditions for the existence of artisans. The guilds kept competitors out of their markets and set market prices for the goods they produced.
2. royal privileges gave the exclusive right to sell or produce certain types of products (services). Merchants and industrialists were glad to get such a privilege in order to get rid of competitors, and the king received money in the treasury. At the same time, many royal decrees were absurd and stupid, which resulted in some countries.

In the 19th century, as a result of the rapid development of production, the competition between manufacturers intensified. Cost reduction led to the enlargement of factories and plants. Remaining players united in various communities( , pools), which acted as monopolists.

Monopolies in the history of Russia are a repetition of global trends. But most of the processes in our country took place with a delay and were often brought in from outside. So, in tsarist Russia, the production of alcoholic beverages was an exclusively state function.

And the first industrial syndicate originated in St. Petersburg in 1886 with the participation of German partners. He united 6 firms producing nails and wire. Later, a sugar syndicate was born, then Prodamet, Produgol, Krovlya, Med, Prodvagon, and others.

Causes of monopoly

The desire to monopolize the market is normal for any business. It is inherent in the very nature of entrepreneurial activity, the main goal of which is to maximize profits. Monopolies are created both naturally and artificially.

Additional factors that contribute to the development of monopoly can be:

1. large expenses for creating a business that do not pay off in a competitive environment;
2. the establishment by the government of legislative barriers to doing business - certification, licensing,;
3. policies protecting domestic producers from foreign competitors;
4. consolidation of firms as a result of acquisitions and mergers.

Antitrust Law

Lack of competition leads to negative consequences in society:

1. inefficient use of resources;
2. shortage of products;
3. unfair distribution of income;
4. lack of incentive to develop new technologies.

Therefore, governments are trying limit the emergence of monopolies. Special state bodies monitor the level of competition in the market, control prices, and prevent the dependence of small firms on large players.

Antitrust laws exist in most countries of the world. It protects the interests of consumers and promotes economic prosperity.

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You may be interested

What is a syndicate What is competition - its functions, types (perfect, imperfect, monopolistic) and the law on protection of competition What is stagnation in simple terms Oligopoly: what is it, its features and properties What is a concern What is a cartel Conjuncture is a multifaceted term with a focus on the market What is a conglomerate What is a market - what are its functions in the economy and what types of markets are distinguished Marketing is the engine of trade What is dumping and what causes dumping

A monopoly position may also arise from the possession (use) by a business entity of exclusive rights to the results of intellectual activity and equivalent means of individualization of the entrepreneur, products (works, services). These are the rights to inventions, utility models, industrial designs, trademarks, service marks, appellations of origin of goods, trade names, etc. (Clause 1, Article 138 of the Civil Code of the Russian Federation).

A business entity may have a monopoly position in the market for the use of these objects based on the very fact of legal recognition of the status of their owner (for example, owners of patents for inventions, industrial designs or trademark registration certificates). Possession of rights to such objects puts the business entity in a position in which the use of these objects depends entirely on its discretion.

The possibility of occupying a monopoly (dominant) position in the market due to the possession of these rights is associated primarily with the monopoly nature of these rights themselves for these intangible benefits (objects of industrial property rights). The owner has the ability to monopoly possess the object, both using it in his activities and not doing it (which is a positive side: rights), as well as to prohibit all other persons from using it without a specially issued permit or license (negative side of the right). The right holder's ability to exclude all other persons from using industrial property objects gives entrepreneurs real competitive advantages and a real opportunity to occupy a monopoly (dominant) position in the market.

The concept and types of monopolistic activity in commodity markets

Monopoly activity refers to actions (inaction) of economic entities that are contrary to antimonopoly legislation and are aimed at preventing, restricting or eliminating competition in goods (Article 4 of the Law of the RSFSR dated March 22, 1991 “On Competition and Restriction of Monopolistic Activities in Commodity Markets”). It is expedient to rank as monopolistic activity the actions (inaction) of state and municipal bodies aimed at preventing, restricting or eliminating competition of goods.

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1. Accentuation of character is an exaggerated development of individual character traits to the detriment of others, as a result of which interaction with other people worsens.
2. Pain is a mental state that occurs as a result of super-strong or destructive effects on the body with a threat to its existence or integrity.

2) a large association that arose on the basis of the concentration of production and capital in order to establish dominance in some area of ​​the economy and maximize profits.

3) preemptive right, a special position of some association in comparison with others.

"Explanatory Dictionary of the Russian Language" S.I. Ozhogov and N.Yu. Shvedova 1999

Monopoly- capture of any trade in one hand by this right or cunning; odnotrade, trade in the same hands.

V.I.Dal "Explanatory Dictionary of the Living Great Russian Language".

Monopoly(from the Greek “mono” - one and “poleo” - I sell) - the exclusive right to carry out any type of activity (production, fishing, use, use of certain objects, products), granted only to the state. In a number of cases, a monopoly right is not granted, but arises naturally or is established by economic entities by occupying a dominant position in the market for goods and services. It is customary to distinguish three types of monopolies: closed, protected from competition with the help of legal prohibitions and restrictions (most often it is a state monopoly), natural, necessary due to the fact that without such a monopoly it is impossible to achieve efficient use of resources, open, in which one firm in due to a combination of circumstances became the sole manufacturer and supplier of goods.

"Modern Economic Dictionary", 1998.

Monopoly:

1) the exclusive right of one or a group of persons, the state to something (for example, land), to produce or acquire something, trade in certain goods.

2) an enterprise (group of enterprises) that occupies a dominant position in an industry, national or world market. Monopolies are, as a rule, large associations (cartels, syndicates, concerns, consortiums, etc.) that are privately owned and control the production and marketing of products based on a high concentration of production and capital. The monopoly sets and controls prices in order to extract high profits. The monopolization of production suppresses the competitive potential of the market economy, leads to higher prices, lower production volumes and excess profits. In practice, monopoly control over approximately 80% of output to dictate the price to all other manufacturers. All developed countries have antitrust laws.

3) the form of the market controlled by one or more enterprises; can manifest itself in the form of monopoly and oligopoly.

"Economic Encyclopedia" 1999

Ancient world.

Aristotle, one of the main thinkers of this era, argued that, in all ways of making a fortune, exchange appears. And with any of the methods of extracting this wealth, it is beneficial "if someone manages to seize some kind of monopoly." Because the monopolist can charge a higher price than the regular price.

Middle Ages.

In the conditions of the economic medieval way of life, the principle of monopoly absolutely dominated. Competition was avoided by all means. The statutes of the city workshops were constructed in such a way as to prevent competition between craftsmen. For this, in particular, mandatory apprenticeship norms were established - so that the number of masters would not multiply. The Charter of the Hanseatic League was structured similarly, in order to avoid competition between merchants.

Mercantelists

State power must provide monopolies for domestic merchants within the country and in foreign markets. The state granted monopoly rights to production and trade.

Nicholas Barbon (1640-1698) is a strong opponent of monopoly and a critic of the general approach of mercantilist authors. “... Turkish merchants argue against the East India Company, a woolen fabric merchant against a silk and velvet merchant, and an upholstered furniture merchant against a bent furniture manufacturer. Some feel that there are too many merchants...others object to the number of alehouses, others only advocate trade in certain goods, others advocate trade with certain countries. So if all these arguments led to the issuance of laws that they so seek, then there would be very few types of trade left for the next generation, many fewer varieties of goods and not one corner in the world with whom to trade without buying permission from them to This…".

In other words. If a law were adopted at the suggestion of every mercantilist pamphlet, the entire economy of the country would be distributed in a monopoly.

Antoine Augustin Cournot(1801-1877) - "... the maximum profit of a monopolist is achieved with such a volume of production when marginal costs are equal to marginal income ...".

MANAGER

1. Explanatory and derivational dictionary (Internet)

1.MANAGER

1. Specialist in the field of production management, enterprise, etc.

2. Organizer of creative, sports, etc. activities of a group or individual.

2. MANAGER (Financial Dictionary) (Internet)

MANAGER - manager of a company, bank, financial institution, their structural divisions; a professional in his field, endowed with executive power.

3. MANAGEMENT (dictionary of economic terms) (Internet)

MANAGEMENT:

management practice, management of production, firm, carried out by managers, managers;

current, the direction of economic thought, studying and considering the role of management, managers in the economy.

4. MANAGERS (Big Encyclopedic Dictionary) (Internet)

MANAGERS (English - singular manager - manager), in the conditions of modern production, management specialists (heads of enterprises, firms, organizations, various kinds of managers).

5. Entrepreneur's Handbook edited by T.G. Tenkin was compiled by V.D. Melnik Kaliningrad "Amber Tale" 1996.

MANAGER (eng. Manager - manager) - a professional manager: general (executive) director of an enterprise, president or member of the directorate (board), head of a department or other divisions of concerns, trusts, syndicates, etc. carries out qualified management of activities. The manager must master the methods and means of managing the team on the basis of deep knowledge of its internal relations, coordination of the activities of workers in the labor process. At present, the manager is also required to know the basics of sociology, psychology, organization of production, etc. In modern practice, managers, as a rule, are employees involved in management activities under contracts concluded with the owners of firms and organizations (shareholders, collective owners, etc.).

6. S.I. Ozhegov dictionary of the Russian language 1990 Moscow "Russian language"

MANAGER.-.Specialist in production management, enterprise operation. School of managers.

7. Popular economic encyclopedia Ch.ed. HELL. Nekipelov. Ed. Col: V.S. Avtonomov, O.T. Bogomolov, S.P. Glinkina and others - M: Great Russian Encyclopedia, 2001.

MANAGER(Eng.Managerfrommanage - to manage), manager, a person who ensures the performance of work by organizing and leading other people. The manager assumes the presence of at least one subordinate.

In carrying out managerial activities, managers perform the following main functions in the organization:

A) manager, leader (foreman, head of department, head of workshop, vice president of the company, chairman of the board of directors, etc.). In this capacity, he forms relationships within and outside the organization, motivates employees of the organization to achieve goals, coordinates their efforts and acts as a representative of the organization or its relevant unit;

B). "converter" of information. The manager collects a variety of information regarding the conditions and results of the organization's activities, disseminates it in the form of facts and nominative attitudes, explains the policy and main goals of the organization;

C) a decision maker who organizes work on the choice of means to achieve established goals.

Thus, each manager necessarily makes decisions, works with information, acts as a leader in relation to a certain group of people. However, not all managers occupy the same position in the organization. It depends on the levels of management: the lower one (the head of the production line - coordinator, foreman, foreman, head of the section), the middle one (headed by a separate unit: director of production, commercial director, chief accountant, head of the technical control department, head of the shop, etc.) and top management (a leader whose scope of management extends to the entire organization as a whole; in many companies, top management includes the president, vice president, members of the board of directors, chairman of the board). Each level has its own manager, whose task is to coordinate the activities of people subordinate to him.

Managers first of all determine how, in what ways it is possible to achieve the set goal, organize and direct the work of subordinates in accordance with detailed plans. They build their interaction with others on the basis of a clear regulation of rights and obligations, trying not to go beyond them.

The main task of a manager is to do business with the help of other people, to achieve collective work. A good manager is always concerned with the interests of the firm, he seeks to balance the interests of the group and the interests of the individual, production interests with the social needs of workers.

In international management practice, a number of rules have been developed that a manager should follow in his managerial activities. These are the so-called "ten golden rules of leadership behavior":

1. Be able to determine the importance and sequence of tasks performed, highlight the main thing.

2. The most significant issues on which the future of the enterprise depends, to decide on your own.

3. Be demanding in relation to subordinates and to the Siba himself, not to allow irresponsibility and laxity.

4. If necessary, act quickly and decisively.

5. To be well informed on those issues that are within the competence of the leader.

6. Do not engage in minor matters, trust their performers.

7. Act only within the limits of the possible, avoid too risky and even more adventurous actions.

8. Be able to lose, retreat.

9. Be fair, honest, consistent and firm in your actions.

10. Find pleasure in work, respect and love it.

According to Arnold Harberger, the presence of a monopoly in the market leads to irreversible losses in the welfare of society - Dead Weight Loss (DWL).

According to Harvey Leibenstein, there is no incentive for a monopoly to maintain efficient production (X-efficiency).

Ramsey prices are linear prices that minimize the net loss to society, provided that the total revenue of the enterprise is equal to its total costs. In this case, prices will be higher than market prices, but society's losses from the monopoly will be minimal.

According to Richard Posner, monopolies create additional costs for gaining and maintaining a monopoly position.

Monopoly (from the Greek monos - one, poleo - sell) is the exclusive right of the state, enterprise, organization, trader (that is, owned by one person, group of persons or the state) to carry out any economic activity. Monopoly is the exact opposite of a competitive market. By its very nature, monopoly acts as a force that undermines free competition, the spontaneous market.

Often, a monopoly means a certain structure of the market - the absolute predominance of a single supplier or seller on it.

It is clear that, like perfect competition, pure monopoly is an abstraction. First, there are practically no products that do not have substitutes. Secondly, there is rarely a single seller in the market (national or global). Although in more closed markets, for example, in a small town, we can observe the phenomenon of pure monopoly. For example, in such a city there may be one doctor with a narrow specialization. It should be noted that, as a rule, the activities of such monopolies are supervised by the authorities or government organizations.

Character traits.

A perfect monopoly is a very rare occurrence. It requires several conditions to be met:

• 1) the monopolist is the only producer of this product;
• 2) the product is unique in the sense that it has no close substitutes;
• 3) the penetration of other firms into the industry is closed by a number of circumstances, as a result of which the monopolist holds the market in its full power and completely controls the volume of output;
• 4) the degree of influence of the monopolist on the market price is very high, but not unlimited, because he cannot charge any high price (any company, including a monopoly, faces the problem of limited market demand).

Simply put, monopoly means the loss of market equilibrium between the seller and the buyer. That is, a strong seller forces the buyer to overpay for goods. The monopolist also uses non-price factors such as advertising, improving product quality, increasing service offerings, and so on. The opportunity to make big profits attracts new producers, therefore, there is strong competition between the monopoly and lagging producers.

There are barriers to entry into the industry, i.e., restrictions that prevent the entry of new sellers into the market of a monopoly firm.

Types of such barriers:

• 1. Legal barriers. For example, the state licenses the activities of radio stations, television, notaries, banks, etc. It is clear that licensing was not created in order to create certain barriers, but it is a factor in strengthening monopolization. Patents and copyrights are considered the main barriers. They encourage people to invent. give certain advantages to the implementation of the product.
• 2. Economic barriers. They are created by the monopolists themselves or by the situation in the country. Other barriers may include:
  • a). Ownership of all sources of resource needed to produce a good.
  • b). Unique abilities and knowledge. For example, artists or athletes have a monopoly on their abilities. A firm that possesses a technological secret, provided that other manufacturers cannot reproduce such technology, has a monopoly on this product.
• 3. Natural barriers. A natural monopoly is an industry in which the production of goods or the provision of services is concentrated in one firm due to objective (natural or technical) reasons, and this is beneficial to society. These barriers are of two types:
  • a) Barriers are erected by nature itself. For example, a company whose geologists have found minerals becomes a monopolist. The company bought the rights. The state, in turn, can regulate the activities of such a monopolist.
  • b) The second type of natural barriers that prevent competitors from entering the monopolist's market is characteristic of monopolies, the emergence of which is dictated either by technical or economic reasons associated with the appearance of economies of scale. For example, it is not rational to have two sewerage systems in the city.

There are many types of monopolies, which can be divided into three main types:

• 1. natural,
• 2. administrative,
• 3. economic.
• 4. Natural monopoly.

A natural monopoly reflects a situation in the market when the demand for a product is satisfied by one or more firms. The meaning of this type of monopoly is the exclusivity of production or service. Competition in this case is not desirable, for example, in energy supply. There are few or one monopolist in this industry.

Signs of a natural monopoly:

• 1. When there is no competition, then the activities of natural monopoly firms are more efficient. This is due to economies of scale and fixed costs. An example is the transportation system.
• 2. High barriers to market entry. Since the fixed costs are very high (laying the railway track), the organization of another parallel system does not pay off.
• 3. Low elasticity of demand. The demand for products produced by a natural monopolist is less dependent on price changes than the demand for other types of products, because. it cannot be replaced by other goods. Such products meet the important needs of society (electricity). If you raise the price of electricity, no one will refuse it, because it is difficult to find the right replacement.
• 4. Network nature of the organization of the market. There is an integral system of extended networks through which a certain service is provided. Such a system is managed from a single center.

There are two types of natural monopolies:

• 1. Natural monopolies. Such monopolies arise because of the barriers to competition that nature itself creates. For example, a company whose scientists have found and developed oil deposits becomes a monopolist. The firm then acquired the rights to the land. However, the state can regulate the policy of such a monopolist.
• 2. Technical and economic monopolies. Such monopolies arise for technical or economic reasons that are related to economies of scale. For example, it is not technically advantageous to install two different sewerage systems in the same city. Large-scale monopolies - energy and transport, tk. economies of scale reduce the average cost of production. For example, if a monopoly firm is broken down into several smaller firms, then the price level for products may rise. And this, of course, is not beneficial for society.

An industry is a natural monopoly if it is cheaper for one firm to produce any volume of output than it is for two or more firms to produce it.

2. Administrative monopoly.

Administrative monopoly arises from the actions of state bodies. This may be the granting of exclusive rights to a particular activity. Or organizational structures for state-owned enterprises that report to different ministries. In this case, enterprises of the same industry are grouped. For example, there was an administrative monopoly in the former Soviet Union.

There is also a state monopoly. It is due to the existence of state enterprises-monopolists in the market (for example, railway transport). Unlike perfect competition, when the market price is taken, a monopoly determines its own prices based on market demand and production costs. The monopolization of the market leads to a relative reduction in production volumes, an increase in prices for goods and services sold by the monopoly. Therefore, the state tries to regulate the activities of monopolies, especially natural ones. It also supports competition in the market.

Monopoly firms also arise due to the fact that it is impossible to reproduce some natural resources, such as oil. Control over the extraction and sale of oil gives advantages to owners and prevents new companies from entering this market.

A patent for an invention gives a firm control over the production and sale of a product for a period of time. For example, General Electric controlled the production and distribution of light bulbs.

3. Economic monopoly.

The most common type is an economic monopoly. These monopolies appear for economic reasons, develop according to economic laws. These are firms that themselves have gained a dominant position in the market. This position can be obtained by constantly increasing the enterprise due to the accumulation of capital. Or with the centralization of capital, that is, when an enterprise merges with others or absorbs bankrupt firms. Thus, the enterprise grows to such a size that it becomes a monopolist in the market.

There are two versions of the development of a monopolist. According to the first, monopolies develop randomly; according to the second, the development of monopolies is very regular. The principle of economic benefit creates monopolistic tendencies in the market. Another force that drives entrepreneurs towards monopolization is the concentration of production and capital. In order to survive in the competitive struggle, firms increase the scale of production. Because of this, larger ones stand out from the total number of small and medium-sized firms. Typically, such enterprises try to negotiate among themselves so as not to be exhausted by competition. This is the main sign of the monopolization of the economy. Consequently, monopoly enterprises appear due to the progress of the productive forces.

In modern economic theory, there are three types of monopolies:

• 1) the monopoly of an individual enterprise;
• 2) monopoly as an agreement;
• 3) monopoly, which is based on product differentiation.

The first way is the most difficult of all to achieve a monopoly position in the market. He is also the most serious, because. contains no tricks. To dominate the market, you need to constantly improve the efficiency of the company.

A more acceptable and common second way, when in order to take a dominant position in the market, it is enough just to agree. Then the buyer finds himself in the worst and uncontested conditions.

There are five main forms of monopoly associations. Monopolists penetrate into all branches of reproduction: production, exchange, distribution, consumption. The simplest monopolistic associations are cartels and syndicates.

A cartel is an association of several enterprises of the same sphere of production, whose participants retain ownership of the means of production and the product produced, industrial and commercial independence, and agree on the share of each in the total volume of production, prices, markets. The cartel agreement may stipulate the same price levels for all its participants and the terms of sales to buyers.

A syndicate is an association of a number of enterprises in the same industry, the participants of which retain funds for the means of production, but lose ownership of the production product, which means that they retain production, but lose their commercial independence. In syndicates, the sale of goods is carried out by a common sales firm.

There are also more complex forms of monopoly associations. They arise when the process of monopolization extends to the sphere of production itself. Then there are more monopolized associations - trusts.

A trust is an association of a number of enterprises in one or more industries, the participants of which lose their ownership of the means of production and the manufactured product, industrial and commercial independence. This means that they combine production, marketing, finance, management, and for the amount of invested capital, the owners of individual enterprises receive trust shares, which give them the right to take part in management and appropriate a corresponding part of the trust's profit.

There are also industry holdings that are created by buying up shares of competing enterprises and establishing economic control over them. This makes it possible to dictate the policy of sales and pricing.

A diversified concern is an association of dozens or even hundreds of enterprises from various industries, transport, trade, whose members do not have rights to property, means of production and the product produced. The parent company, in this case, controls the other participants in the association.

However, the monopolies that have seized power in the industry, then slowly lose it. This is because the advantages of a monopolist are not absolute. The profits of monopolistic associations increase only up to a certain limit.

Over time, man realized that monopolies are an economic evil. They break the normal operation of market mechanisms, and this is harmful for the whole society. Therefore, most countries have some kind of antitrust policy.